Worthington Steel Raises $1.4 Billion for Klöeckner Takeover

Worthington Steel Inc. raised $1.4 billion in the leveraged-finance market Thursday to help fund its acquisition of German metals company Klöeckner & Co SE.

Ohio-based Worthington priced $700 million each of junk bonds and leveraged loans in deals led by Wells Fargo & Co., according to people familiar with the situation who asked not to be identified as they’re not authorized to speak publicly. The initial plan was for a $900 million note and a $500 million loan.

The seven-year bond has a yield of 7.75%, versus price talk of about 8.25%, one person said. The loan has ...